French bank uncovers $7bn fraud

Societe Generale names suspected trader after announcing it is a victim of fraud.

25 Jan 2008 07:07 GMT

CEO Daniel Bouton offered his resignation over the scandal but it was refused [AFP]

'Massive fraud'

Societe Generale said it had been forced to look for more than $8bn in new capital to cover its losses, which also include writeoffs due to the crisis in the US high-risk, or "sub-prime", mortgage market.

France's second-largest bank by market value said that the fraud, uncovered in its French markets division last week, was "exceptional in its size and nature".